这题为啥不选b,是因为beta-weighted嘛

问题如下：

Which equity hedge fund strategy best describes the ZMD and Tarreras positions taken by Xu

选项：

A.Short bias B.Long/short equity C.Equity market neutral

解释：

C is correct. Xu’s decision to short ZMD and take a long position in Tarreras with equal beta-weighted exposure is an example of a pairs trade or an equity-market-neutral strategy. Xu is neutralizing market risk by constructing a strategy where the expected portfolio beta is zero. Since her strategy does not take beta risk and attempts to neutralize many other factor risks, Xu must apply leverage to the long and short positions to achieve a meaningful expected return from the stock selection